Temasek sees long game in SIA’s Air India bet

Singapore state investor Temasek expressed confidence in Singapore Airlines' investment in Air India, arguing that the Indian carrier can play a crucial role in the airline's long-term growth strategy. Despite concerns over Air India's loss-making status, Temasek believes the venture will deepen Singapore Airlines' presence in India, the world's third-largest air transport market.

The majority shareholder of Singapore Airlines stated that India's vast and expanding aviation market makes it an ideal location for Singapore Airlines' second hub. Temasek praised Singapore Airlines' disciplined and resilient approach, which has consistently focused on long-term growth. The comments came amid scrutiny of the investment, including an article questioning the airline's exposure to Air India.

Temasek emphasized that Singapore Airlines' involvement in the Indian market, through its partnership with Vistara which was later merged with Air India, should be viewed as part of a long-term strategy. The investor acknowledged the complex and multi-year challenges of transforming Air India but maintained that such initiatives are essential for sustained growth in the aviation industry.